Date:18/08/2006 URL: http://www.thehindubusinessline.com/2006/08/18/stories/2006081801641400.htm

Back Orbit Corporation plans IPO

Our Bureau

Mumbai , Aug 17

Real estate developer Orbit Corporation Ltd (OCL) has filed a draft red herring prospectus with SEBI for its initial public offering.

The company proposes to offer 91 lakh equity shares of Rs 10 each for cash at a premium, to be decided through a 100 per cent book building process, along with one detachable warrant per equity share, which may be converted into an equity share at a later date.

The offering will constitute 25.09 per cent of the fully diluted post-issue equity capital prior to the conversion of the detachable warrants, and 40.11 per cent assuming full conversion of the detachable warrants, said a press note issued by the company.

At least 50 per cent of the offer is reserved for qualified institutional buyers, and non-institutional investors (NIIs) will get a maximum allotment of 15 per cent on a proportionate basis. The rest would be available for retail investors. The company is currently executing 12 projects in Mumbai, a majority of which are redevelopment projects.

The sole book running lead manager to the issue is Edelweiss Capital Ltd.